Gold Trades Below $4000 for First Time in 2026

Gold prices fell below the $4000 mark for the first time in 2026 during trading on Tuesday, with the price of a 31.1-gram ounce of 999.9 purity gold dropping to $3972, a decline of 3.37%.

This level represents the lowest gold price in over seven months, specifically since November 7, 2025.

Based on current gold prices, the price of 21-carat gold (875 purity) per gram in Saudi Riyals reached 419 before including craftsmanship fees and value-added tax. This type of gold is typically sold as crafted jewelry and coins. Meanwhile, 18-carat gold (750 purity) prices fell to 359 Riyals per gram before craftsmanship fees and VAT.

The decline in gold prices coincided with the US dollar continuing to rise, reaching its highest level in 13 months. The relationship between gold and the dollar is inverse; as the dollar strengthens, gold prices tend to fall.

Higher interest rates have reduced the appeal of gold, which does not generate yield, contributing to a more than 4% drop in gold prices since the Federal Reserve's meeting last week.

Investors are awaiting the release of the US personal consumption expenditures data, the Federal Reserve's preferred inflation gauge, scheduled for Thursday, to gain further insight into monetary policy direction.

On the geopolitical front, US President Donald Trump stated on Tuesday that Iran agreed to "indefinite" nuclear inspections. However, Tehran denied making any such concessions during negotiations, casting doubt on the fragile agreement between the two parties.

Other precious metals also declined: spot silver fell 1.5% to $61.12 per ounce, platinum dropped 1.4% to $1629, and palladium decreased 1.6% to $1217.25.